Correlation Between Transamerica Small/mid and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Transamerica Small/mid and Mainstay Epoch at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Transamerica Small/mid and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transamerica Smallmid Cap and Mainstay Epoch Equity, you can compare the effects of market volatilities on Transamerica Small/mid and Mainstay Epoch and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Transamerica Small/mid with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transamerica Small/mid and Mainstay Epoch.
Diversification Opportunities for Transamerica Small/mid and Mainstay Epoch
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Transamerica and Mainstay is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Transamerica Smallmid Cap and Mainstay Epoch Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Equity and Transamerica Small/mid is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Transamerica Smallmid Cap are associated (or correlated) with Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Equity has no effect on the direction of Transamerica Small/mid i.e., Transamerica Small/mid and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Transamerica Small/mid and Mainstay Epoch
Assuming the 90 days horizon Transamerica Smallmid Cap is expected to generate 0.99 times more return on investment than Mainstay Epoch. However, Transamerica Smallmid Cap is 1.01 times less risky than Mainstay Epoch. It trades about 0.03 of its potential returns per unit of risk. Mainstay Epoch Equity is currently generating about -0.04 per unit of risk. If you would invest 2,941 in Transamerica Smallmid Cap on September 10, 2025 and sell it today you would earn a total of 47.00 from holding Transamerica Smallmid Cap or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Transamerica Smallmid Cap vs. Mainstay Epoch Equity
Performance |
| Timeline |
| Transamerica Smallmid Cap |
| Mainstay Epoch Equity |
Transamerica Small/mid and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transamerica Small/mid and Mainstay Epoch
The main advantage of trading using opposite Transamerica Small/mid and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transamerica Small/mid position performs unexpectedly, Mainstay Epoch can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mainstay Epoch will offset losses from the drop in Mainstay Epoch's long position.| Transamerica Small/mid vs. Applied Finance Explorer | Transamerica Small/mid vs. Clarkston Partners Fund | Transamerica Small/mid vs. T Rowe Price | Transamerica Small/mid vs. Artisan Mid Cap |
| Mainstay Epoch vs. One Choice 2040 | Mainstay Epoch vs. One Choice Portfolio | Mainstay Epoch vs. Small Cap Equity | Mainstay Epoch vs. T Rowe Price |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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